Trade Finance

CEDA offers Trade Finance facilities across product offerings such as Invoice Discounting, Factoring, Performance Bonds, Suppliers Guarantees, Bank Guarantees and other Credit Guarantees.

Performance Bonds

Undertaking given by CEDA on behalf of a contractor which guarantees due performance by a contractor in terms of an existing and underlying principal contract.
This product normally assists clients to bid for contracts that require performance to be guaranteed by a financial institution.

Suppliers Guarantees

Provides the same rights as performance bonds save that the facility guarantees the supply of goods in terms of an underlying

contract

Normally assists clients to procure goods and services on credit from suppliers who may not know their credit-worthiness.

Bank Guarantees

An undertaking by CEDA to a commercial bank guaranteeing that a client will pay his liabilities with the bank.
In this instance CEDA becomes a surety and is liable for 100% of the client’s debt as co-principal debtor.

Credit Guarantee

A packaged credit guarantee to commercial banks where banks wish to provide facilities to their clients but there is insufficient collateral.
In this instance CEDA covers up to 75% of all net losses that commercial banks may incur. Currently such a packaged agreement has been signed with the following banks:

  • Barclays;

  • Standard Chartered;

  • Bank of Baroda;

  • Stanbic;

  • BancABC; and

  • First National Bank.

Factoring

CEDA is able to purchase a business’s accounts receivables at a discount to assist businesses with their cash flow requirements.

Invoice Discounting

CEDA is further able to purchase a business’s future rights to invoice payments so as to assist a business with its immediate working capital requirements.